During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Sales (@ $64 per unit) Cost of goods sold (@ $36 per unit) Gross margin Selling and administrative expenses* Year 1 $ 1,088,000 612,000 Year 2 $ 1,728,000 972,000 476,000 756,000 305,000 335,000 $171,000 $421,000 Net operating income $3 per unit variable: $254,000 fixed each year. The company's $36 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($286,000 +22,000 units) Absorption costing unit product cost, Production and cost data for the first two years of operations are: $ 10 10 3 13 $ 36 Units produced Units sold Required: Year 1 Year 2 22,000 17,000 22,000 27,000 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 12 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($286,000 22,000 units) Absorption costing unit product cost 5 10 10 13 $.36 Book Production and cost data for the first two years of operations are Year 1 Year 2 Units produced Print Units sold Required: 22,000 22,000 17,000 27,000 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using variable costing, what is the unit product cost for both years? Unit product cont $ 23 Required Required 2 > Fixed manufacturing overhead ($286,000 22,000 units) Absorption costing unit product cost ellook. Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced Print Units sold. Required: 22,000 22,000 17,000 27,000 References Mc Graw 13 $ 36 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the variable costing net operating income in Year 1 and in Year 27 (Loss amounts should be indicated with a minus sign.) Net operating income (loss) Year 1 Year 2 < Required 1 Required 3 > Prey 5 of 7 Next > Block Print 0 Ferences Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 31 Reconcile the absorption costing and the variable costing net operating income figures for each year. c Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Variable costing net operating incomorfoss) Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income